Fang Holdings (f.k.a SouFun Holdings) – Glaucus Research

We believe that the founder and Chairman of SouFun Holdings Limited (“SouFun” or the “Company”), which owns and operates a real estate website in China, has diverted resources from the Company for personal use through a series of questionable transactions involving high-priced New York real estate and charities of dubious authenticity. SouFun’s VIE structure demands that shareholders have full faith in the integrity of the Chairman because it is he, ultimately, who owns and controls the operating business in China. We believe that SouFun’s Chairman has irrevocably broken the trust of shareholders, rendering, in our view, the Company’s shares only as valuable as the Chairman’s apparent respect for his fiduciary duties.